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Latin America Investment News on Viva Tropical

Honduran Private-Public Consortium Abandons $27 Million Cement Plant

Article Summary:

Lafarge-Incehsa, a Honduran public-private consortium, has abandoned a cement plant worth 526 million lempiras (U.S. $27.4 million) in San Lorenzo, Valle. Cementos del Sur (Cesur) ceased operations in August 2009 claiming that there were problems with the supply of clinker, which is the raw material used for the production of gray cement.

Original Article Text From America Economia via Google Translate :

Honduran public-private consortium has abandoned cement plant

Lafarge-Incehsa, public-private consortium, has abandoned a cement plant worth 526 million lempiras (U.S. $ 27.4 billion) in San Lorenzo, Valle.

Cementos del Sur (Cesur) ceased operations in August 2009 claiming that there were problems with the supply of clinker, which is the raw material used for the production of gray cement.

This company was previously known as American Cement (Cemar), owned by US-Japanese Taiheiyo Cement Cerna, which is embroiled in a scandal of expropriation, which is linked to the State of Honduras by the equity you have in the Military Pension Institute (WPI), which is a partner of Lafarge-Incehsa.

Cemar began operations on October 6, 2003 at its plant in The Riddle, San Lorenzo, launching its brand one to supply the central-south and east, however, eight months later shut down operations for a “price war “declared by Incehsa, achieving lower the price of the stock from 80 to 41 lempiras.

When cement One began to be distributed at a lower price than the competition was justified because the five lempiras difference was the cost of freight, which made sense because at present the price in the departments of Choluteca and Valle is 148 lempiras, ie, the highest in the country.

Subsequently, the assets of American Cement were acquired by the Honduran-French consortium in a deal that also became embroiled in a scandal over the alleged involvement of officials to benefit Lafarge-Incehsa.

Sources of chambers of commerce and industries of Choluteca and Valle said they had no information as Cesur restart operations in the short or medium term, and the only thing that has circulated is that while the cement plant is in litigation in the courts of justice U.S. will remain closed.

Production Cesur was a gray cement processing plant, where the mixture was made of clinker and porcelain for the drafting of the construction material. Processing capacity was 120,000 tons, equivalent to 2.5 million bags.

Domestic production of gray cement is 40.1 million bags, which is held by two companies: Lafarge-Incehsa Cenosa and who share the market to avoid competition, which has been questioned by several sectors of the approval of prices that has existed for several years. It is expected that this year the same levels of production.

Link to Original Article:

From America Economia

Latin America Investment News on Viva Tropical